Report Title:

General Excise Tax; Education; Tax Free Week

 

Description:

Exempts the general excise tax on the purchase of certain articles of apparel and school supplies for students during the week before public school begins.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1312

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

relating to taxation.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


SECTION 1. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"237-    Public school; tax free week. (a) The seven days before public school instruction begins every year shall be designated a general excise tax free week. During that week, amounts received from all purchases of the following items for use by students returning to schools shall be exempt from the general excise tax:

(1) Any article of apparel, including clothes, footwear, watches, watchband, handkerchiefs, and umbrellas; provided the cost of the articles do not exceed $50; and

(2) All school supplies, including pens, pencils, erasers, crayons, notebooks, paper, legal pads, composition books, poster paper, scissors, cellophane tape, glue or paste, rulers, computer discs, protractors, compasses, and calculators; provided that the cost of each school supply item does not exceed $10.

(b) This section shall not apply to any item or apparel sold at theme parks, public lodging establishments, or airports.

(c) The department of taxation shall adopt rules pursuant to chapter 91 to administer this section, including reporting requirements for retailers.

(d) On July 1 of each year, the superintendent of education shall publish a notice statewide as provided in section 1-28.5 announcing a single specific date upon which public school instruction is scheduled to begin. For purposes of this section, the published date shall be the controlling date, regardless of the date that instruction actually begins at any particular public school."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval and apply to taxable years beginning after December 31, 2008.

 

INTRODUCED BY:

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